Boeing faces largest quarterly loss in its history after a $4.9 billion financial hit due to 737 MAX grounding
Biggest quarterly loss in Boeing's history
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July 19, 2019 - by Dominic Gates for seattletimes.com
Girding to compensate its worldwide airline customers for delayed deliveries and disrupted schedules, Boeing on Thursday bit the bullet and announced a $4.9 billion after-tax accounting charge for the ongoing grounding of the 737 MAX jet.
This huge hit to earnings will produce the biggest quarterly loss in Boeing's history when it reports its financial results next week.
Before the announcement, S&P; Capital IQ had projected a second-quarter profit of $1.3 billion. The charge of $4.9 billion will turn that into a loss of around $3.6 billion.
In 2009, Boeing reported a loss of $1.6 billion, after writing off the first three flight test 787 Dreamliners and taking a charge for delays on the 747-8. The only other red ink in the last ten years came in 2016, when it lost $234 million after writing off two later 787 flight test planes, took another charge on the 747-8 and and added another write-off for the KC-46 tanker program.
"Any changes to these assumptions could result in additional financial impact," Boeing cautioned....